LINK TO TEXT LINK TO TEXT (a) Materials Conversion Costs Rivera Company has seve
ID: 2498383 • Letter: L
Question
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(a)
Materials
Conversion Costs
Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2014 totaled $2,224,974 as follows.Work in process, November 1 Materials $79,110 Conversion costs 48,960 $128,070 Materials added 1,529,832 Labor 225,500 Overhead 341,572
Production records show that 34,640 units were in beginning work in process 30% complete as to conversion costs, 664,900 units were started into production, and 25,100 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
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Explanation / Answer
Calculation of equivalent units of production:
Material
Conversion
Beginning work in process
0
24248
34640 *(1-100%)
34640 *(1-30%)
Units started and completed (664900 -25100)
639800
639800
Ending work in process
25100
10040
(25100*100%)
(25100*40%)
Total Equivalent Units
664900
674088
Calculation of unit production costs:
Material
Conversion
Cost incurred during November (A)
$ 1,529,832
$ 567,072
(225500+341572)
Total Equivalent Units (B)
$ 664,900
$ 674,088
Unit production costs =A/B
$ 2.30
$ 0.84
Calculation of equivalent units of production:
Material
Conversion
Beginning work in process
0
24248
34640 *(1-100%)
34640 *(1-30%)
Units started and completed (664900 -25100)
639800
639800
Ending work in process
25100
10040
(25100*100%)
(25100*40%)
Total Equivalent Units
664900
674088
Calculation of unit production costs:
Material
Conversion
Cost incurred during November (A)
$ 1,529,832
$ 567,072
(225500+341572)
Total Equivalent Units (B)
$ 664,900
$ 674,088
Unit production costs =A/B
$ 2.30
$ 0.84
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